Agfa Graphics and xpedx to End Business Relationship

RIDGEFIELD PARK, NJ/CINCINNATI, OH—Nov. 29, 2010—Agfa Corp. and xpedx today announced a joint decision to wind down their long-standing relationship. Effective on Feb. 28, 2011, xpedx will end its distribution of Agfa-branded graphics products in the United States.

Management of both companies have agreed on a transition plan and timetable to avoid disruptions of service and support to customers. This effort will ensure a continuous supply of printing products to customers.

The decision follows Agfa’s acquisition of The Pitman Co., a leading distributor to the graphics communications industry. The goal of the Pitman acquisition was to allow Agfa to expand into new addressable markets.

Also, Eastman Kodak Co. named xpedx its primary national dealer and simultaneously announced it would terminate Pitman’s right to distribute Kodak products effective Oct. 5, 2010.

xpedx says it will minimize impact to customers two ways: by helping customers integrate solutions from other manufacturers or transition to alternative sources for Agfa plates and graphic consumables. Customers will be able to purchase Agfa products from other regional dealers and from Pitman, Agfa’s distribution company.

“Our customers are our highest priority and whether they decide to explore new technologies, or go elsewhere for Agfa products, xpedx will support their needs,” said Dennis Killion, director of marketing-Graphics, xpedx. “Equally important is helping customers grow with complete, integrated systems, and our supplier relationships must reflect that goal.

“Today, our customers receive their plate shipments together with their two other largest purchases: paper and ink,” Killion added. “xpedx will continue to provide customers with the supplies they need to efficiently operate through a single supply chain.”

According to Peter Wilkens, president of Agfa Graphics, “The graphic communications industry is in transition, and we acknowledge that new strategic partnerships are the result of the evolving needs of the marketplace. Thanks to our long-standing business relationship, Agfa and xpedx have agreed to a transition plan that will not cause any concern for our joint customers.”

It never ceases to amaze me at the spin companies can put on bad decisions. AGFA buys Pittman solely because of the huge amount of money Pittman owes AGFA. So what better way to get the money than buy the company? But then in the same breath, Kodak and AGFA both cut off their noses to spite their face.

Perhaps this will all be for the best as far as printers are concerned. Tie yourself to a single distributor and make that game work well. Those in bigger cities will have more options but lots of printers will need to pick a distributor first and then go with their plates, ink, etc. That is the wave of the future.